Shares of Syngene International declined approximately 8% after the company reported disappointing first-quarter results and lowered its revenue outlook.

Syngene International, a contract research and manufacturing services company and a subsidiary of Biocon Ltd, is listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) of India. Biocon holds a majority stake in Syngene. The company provides integrated research, development, and manufacturing services to global pharmaceutical, biotechnology, and chemical companies, with client relationships spanning large pharma, biotech firms, and academic institutions.

According to management guidance, the first half of fiscal year 2027 is expected to remain challenging, with Syngene's revenue likely to decline during the period. The company attributed the subdued near-term outlook to headwinds affecting its business segments.

However, management anticipates that business momentum will improve in the second half of FY27, which should partly offset the weak first-half performance.

The revenue outlook cut marks a notable shift for the company, which had previously been viewed as a beneficiary of growing demand for outsourced research and development services in the pharmaceutical and biotechnology sectors. The broader contract research and manufacturing industry has been navigating a period of normalization after elevated demand during the pandemic, with global biotech funding pressures also influencing client spending patterns across the CRO and CDMO landscape.

The stock's decline reflects investor reaction to the revised guidance and the cautious near-term outlook.

Source: CNBC-TV18